Governance for the Environment

Governance for the Environment

A Comparative Analysis of Environmental Policy Integration

The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development

Edited by Alessandra Goria, Alessandra Sgobbi and Ingmar von Homeyer

The integration of environmental concerns into other policy areas is widely recognized as a key element to achieve sustainable development. It also represents a challenge for the environmental community, requiring not only a new approach to policy-making but also changes to existing policies and their implementation. This essential book presents a diverse set of perspectives and experiences on how to support sustainable development through the integration of environmental issues into various policy sectors.

Chapter 1: Insights from Environmental Economics in the Integration of Environmental Policy into Decision-Making

Frank J. Convery

Subjects: economics and finance, environmental economics, environment, environmental economics, environmental governance and regulation, environmental politics and policy, politics and public policy, environmental politics and policy, european politics and policy


Frank J. Convery 1.1 INTRODUCTION There are two separate but related ways of addressing how integration of environment into the policy process can be addressed. The first is to focus on process – how environment and developmental policies are linked and coordinated, often with an emphasis on legal and regulatory frameworks and institutions, and the linking of sectoral development and environment. This strand is implicit in the OECD’s sense of environmental policy integration, which defines it as: Early coordination between sector and environmental objectives in order to find synergy between the two or to set priorities for the environment where necessary. The second is more explicitly normative and ‘economic’ in flavour, with an emphasis on costs, benefits and price signals, which I define as follows: Environmental policy integration is where the costs and benefits of environmental stewardship in the development process are recognised, and acted upon in the sense that the policy process ensures that ‘environment’ is given appropriate consideration in the articulation of choices, in the decisions made, and in their implementation, ideally with the use of a price signal that reflects the scarcity of the environmental endowment in question. The World Bank attempted this sort of integration of environment and development in its lending and sectoral policies, described in Warford (1987) and Pearce and Warford (1993). Sgobbi et al. (2007) make the point that with a process and institutional focus: It is very difficult to define criteria for assessing whether environmental policy 1 2 Governance for the Environment integration...

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